The following article regarding bunker fuel availability in the Americas region has been provided by online marine fuel procurement platform ENGINE for post on Singapore bunkering publication Manifold Times:
- Availability tight in Nederland
- Supply remains very tight in Zona Comun and nearby Brazilian ports
- Bad weather impacts GOLA bunkering
North America
Houston’s bunker fuel demand has been normal this week. VLSFO and LSMGO availability has improved, and some suppliers can deliver both grades within 5-7 days. HSFO can also be secured with a longer lead time of seven days, a source says.
In Bolivar Roads, some suppliers can offer VLSFO and LSMGO for prompt dates. However, these prompt deliveries are subject to weather conditions and the availability of anchorage space, a source says.
VLSFO and LSMGO grades are tight for prompt dates in Nederland. One supplier requires lead times of 13-15 days to supply both grades.
VLSFO and LSMGO availability is also tight for prompt dates in the Port of Mobile. Some suppliers are able to offer stems only for dates further out.
Fog and reduced visibility around Corpus Christi, Galveston, Port Arthur and Lake Charles this week have delayed vessel traffic around these ports and also through the Houston Ship Channel, a source says. Fog is expected to disrupt bunkering at the ports until Saturday.
Similarly, in the Galveston Offshore Lightering Area (GOLA), bunkering activities are experiencing delays due to dense fog and reduced visibility. However, the weather forecast indicates the fog will mostly clear on Thursday, enabling bunkering to run smoothly. Strong wind gusts are also forecast over the weekend, and deliveries maybe suspended again.
Due to the ongoing weather-related disruptions, demand has been very low at GOLA. One supplier is able to offer stems for very prompt dates, however, deliveries will be subject to weather, he mentions.
Securing both prompt and non-prompt stems for all fuel grades is tight at the New Orleans Outer Anchorage (NOLA). Some suppliers are unable to provide an exact date for when they will have the supply available.
Demand has been low in the West Coast ports of Long Beach and Los Angeles this week. Availability of all grades is normal, with lead times of around 5-7 days.
Availability of VLSFO and LSMGO is tight in Vancouver, further up the North American west coast. One supplier needs at least seven days of lead time to deliver both fuel grades, while another supplier requires eight days.
VLSFO and LSMGO availability is normal in the East Coast port of New York. Overall, bunker demand has been slow in New York so far this week.
Caribbean and Latin America
Due to low water levels in the Panama Canal, demand remains subdued for all bunker grades in Panama. Availability is good for all grades in both Balboa and Cristobal ports in Panama.
As the rainy season draws nearer in Panama, there is a sense of optimism in the shipping industry that the number of daily transits through the Panama Canal could increase, a source says.
Despite the sluggish demand, bunker fuel prices in Cristobal have been higher compared to Houston. As a result, one buyer opted to procure LSMGO stems from Houston rather than Cristobal due to the price discrepancy.
HSFO supply in Peru’s Callao is expected to improve with incoming cargo, which can lower prices and help to compete with Ecuador.
Currently, Callao’s HSFO is priced about $200/mt higher than most Ecuadorian ports due to ample supply in the country. HSFO is still available with a few suppliers in Callao, but subdued demand persists due to the significant price difference. Ecuador’s advantage lies in its high residual fuel oil yield, making it more attractive to bunker buyers.
Availability of VLSFO and LSMGO remains tight in Argentina’s Zona Comun. The earliest delivery date with most suppliers has been pushed back from 10 March to 23 March now. The limited number of suppliers, combined with intermittent weather disruptions, has resulted in shortages of bunker fuel supplies.
Similarly, demand has been notably low in Brazil this week, with tight availability persisting in most Brazilian ports, particularly in Santos, where the recommended lead time ranges between 12-15 days.
By Debarati Bhattacharjee
Photo credit and source: ENGINE
Published: 8 March 2024